Evaluating the EMS and EMU Using Stochastic Simulations: Some Issues

Author/Editor:

Paul R Masson ; Steven A. Symansky

Publication Date:

March 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Evaluations of European monetary integration using model simulations have given conflicting results, and the paper attempts to elucidate the reasons for the differences. Several features stand out: how to model realignments; how monetary policy is set for individual countries or for Europe; and how large are risk premium shocks in exchange markets. We quantify the effects of different assumptions relating to these features using MULTIMOD.

Series:

Working Paper No. 1993/028

Subject:

English

Publication Date:

March 1, 1993

ISBN/ISSN:

9781451844580/1018-5941

Stock No:

WPIEA0281993

Pages:

40

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